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Multinational corporations

Explain Multinational corporations (MNCs) and what the economic roles do they play?

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Multinational Corporation (MNC) is defined as the business organisation established in one country which has sales and production operations in various other countries. Certainly, some MNCs have operations in several different countries.  MNCs gain financing from the money centres around the world in several different currencies in order to finance their operations.  Global operations force the banker’s office to form the international banking relationships, to effectively manage foreign exchange risk and to place short-term funds in several currency denominations.

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